Some of the best performing radio stations in the country could be up for sale. This includes 2GB and 3AW. How do we know this? Well, the owner’s newspaper, The Australian Financial Review, is revealing that Nine Entertainment is up for listening to offers to buy the business.

In case you’ve missed it, Nine Entertainment includes the Nine TV Network, the SMH and AFR newspapers, Stan, Nine Events and Nine Radio, which is largely the old Macquarie Radio Network.

Nine Radio’s stations include 2GB, 3AW, 4BC, 6PR, 2UE, Magic 1278 and 4BH.

Nine Entertainment recently sold Domain for $3 billion. This shows that if the price is right, the board of Nine is happy to entertain offers from buyers with deep pockets.

In 2019, Nine paid close to $114 million to take control of the Macquarie Radio Network, valuing the business at $275.4 million. But the business might find it difficult to get that kind of money in the modern context.

Why? Try these:

1. Unlike previous generations, younger generations don’t listen to radio.
2. The Internet has taken away lots of listeners and advertisers.
3. The age of the shock jocks, who brought legions of loyal fans to radio stations, is no longer as socially acceptable.
4. Social media backlash has scared off radio stations from being too divisive and has made advertisers wary of being linked to controversial radio agitators.
5. As a consequence, radio is less profitable, especially when it’s run by a big end of town player. A more entrepreneurial business might have more potential to have a higher return on capital.

That said, Nine’s new CEO, Matt Stanton, isn’t saying the business is definitely up for sale.

The AFR’s Sam Buckingham-Jones looked at Stanton’s precise take on the subject and reported the following: “We have had a number of unsolicited inquiries about our radio business. Contra to what has been in the press, because some of that stuff is completely wrong, but we have had a number of approaches,” Stanton told staff. “We have decided to do a review of the audio business. So, what does that mean? That doesn’t mean we’re going to sell the radio business, per se. We will review all options, which could be continuing to keep radio and investing in it, and maybe investing more in digital. It could be partnering with people, and it could be selling the business.”

For the record, this is prudent behaviour for the CEO and his board. The Nine board now has a new chairman in Peter Tonagh, who replaces Catherine West, who stepped in when former Federal Treasurer Peter Costello resigned in June 2024, after reportedly clobbering a pesky reporter from The Australian.

Tonagh was former CEO of News Corp Australia and Foxtel boss, so he knows the new age media world that Nine has to compete in.

In the modern world, relatively speaking, old media has less eyes and ears. And advertisers are no longer as dependent on radio, TV and newspapers, so their value has declined.

This doesn’t mean they can’t be profitable. Possibly a different approach to running these businesses, using the likes of AI in concert with outside the square thinking (when it comes to leveraging the customer base that still loves TV, radio and newspaper content) could produce profitable results.

In February, radiotoday.com.au reported rumours that former Macquarie Media owner, John Singleton, was putting together a consortium to buy back the radio network at a bargain price.

And price is the critically important issue on who eventually owns Nine. In the 1990’s, Nine owned and aired the TV show hosted by Larry Emdur called The Price is Right. And that’s what it has to be for Nine to sell its still impressive radio business. It’s just not as impressive as it used to be.